Revenue Gross Profit Profit Before Tax Profit After Tax

Size: px

Start display at page:

Download "Revenue Gross Profit Profit Before Tax Profit After Tax"

Brenda Montgomery
5 years ago
Views:

1 TA CORPORATION LTD (Incorporated in the Republic of Singapore on 7 March 2011) (Company Registration No R) NEWS RELEASE TA CORPORATION 1Q2012 PROFIT AFTER TAX SOARS 113.5% to S$16.4 MILLION - Revenue more than doubles to S$93.5 million on strong contributions from the Group s real estate development and construction business segments - Improved Group s gross profit margin - Strong construction order book worth approximately S$481 million for progressive delivery over the next 36 months (S$ million) 1Q2012 1Q Change (%) (Restated) Revenue Gross Profit Profit Before Tax Profit After Tax Singapore, May 12, 2012 TA Corporation Ltd ( TA Corporation, and together with its subsidiaries, the Group ) ( 长益集团有限公司 ), an established property and construction group, announced today that its net profit after tax for the three months period ended March 31, 2012 ( 1Q2012 ) soared 113.5% to S$16.4 million, from S$7.7 million in 1Q As the Group was restructured on 16 September 2011 and listed on the SGX-ST on 21 November 2011, the Statement of Comprehensive Income for the 3 months ended 31 March 2011 have been prepared on proforma basis that our Group has been in existence throughout the said period. Page 1 of 6 No. 1 Jalan Berseh #03-03 New World Centre Singapore Tel: Fax:

2 The sterling performance was achieved on the back of revenue which more than doubled to S$93.5 million, driven by strong contributions from the Group s real estate development and construction business segments. Underscoring the strong performance achieved as well as the Group s prudent cost management approach, the gross profit margin has improved. Commenting on the Group s performance, Mr Neo Tiam Boon, the Chief Executive Officer and Executive Director of TA Corporation, said, We are highly encouraged by the Group s first quarter financial performance, which is an affirmation that our strategies to deepen market penetration into existing businesses are yielding results. In particular, the 242% jump in contribution recorded by our real estate development arm, is a clear testament of the market s confidence in the quality and value of our developments. Performance Review Revenue (S$ million) 1Q2012 1Q2011 Change (%) Real Estate Development Construction Total The real estate development segment recorded a 242.0% jump in revenue contribution to S$47.2 million in 1Q2012, on strong contributions from its ongoing projects: Parc Seabreeze, a 94-unit freehold condominium launched in 2009; Coralis, a 127-unit freehold condominium launched in 2010; Auralis, a luxurious 56-unit freehold condominium launched in May 2011; and first time contributions from a new residential development The Cristallo, an exclusive 74-unit freehold condominium launched in March These four quality developments are conveniently located near East Coast Park, an array of shopping malls, MRT stations and established education institutions. Page 2 of 6

3 The construction segment saw a 46.1% rise in contributions to S$46.3 million for 1Q2012 as compared to S$31.7 million in 1Q2011 as it recognised higher revenue from progressive construction work completed for its ongoing projects. General and administrative expenses rose 66.5% to S$4.0 million in 1Q2012, from S$2.4 million in 1Q2011, as the Group increased head counts, mainly for its construction business, and better staff incentives, which is in line with its increased business activities and strengthened performance. Selling and distribution costs rose from S$0.6 million in 1Q2011 to S$1.1 million in the period under review, largely due to commission incurred for units sold and show flat costs expensed off in 1Q2012. As at March 31, 2012, equity attributable to the owners of the Company improved to S$183.4 million from S$170.1 million as at December 31, The Group remains in a healthy financial position with cash and bank balances at S$54.5 million. The Group s earnings per share rose to 2.9 Singapore cents in 1Q2012, from 1.8 Singapore cents a year ago, while net asset value per share rose to 39.5 Singapore cents in 1Q2012, from 36.6 Singapore cents in 1Q2011. Based on the May 11, 2012 closing share price of 24.5 Singapore cents, the Group s shares present investors with an attractive 38.0% discount to its net asset value. Outlook While the Group remains positive on demand for quality well-located residential properties in Singapore, it remains cautious on the near-term outlook for the Singapore private residential property market, as uncertainty arising from the possible implementation of further cooling measures by the Singapore Government may further impact the real estate industry. Separately, weaknesses in global markets arising from the unresolved European sovereign debt crisis as well as the anticipated slowdown in China s economic growth in 2012 is also expected to indirectly impact Singapore s economic growth and dampen buyer sentiments. Page 3 of 6

4 For the construction sector, while the Building and Construction Authority had forecast a decrease in construction demand for Singapore in 2012 to around S$21.0 billion S$27.0 billion 2, from S$32.0 billion in 2011, the Group remains confident on the operating outlook for its construction business, underpinned by a strong order book worth approximately S$481 million. Mr. Neo said, We are of the view that the progressive contributions from our ongoing residential projects, which includes our latest development launched in March 2012 the 74-unit The Cristallo, and proceeds from the progressive completion of our construction order book, will contribute strongly to the Group s earnings in the current financial year. Moving forward, we will continue to adapt our business strategies and utilise our comparative advantages to acquire strategic land banks for development and leverage on TA Corporation s strong brand equity as quality builder to grow our construction order book further. 2 Page 4 of 6

5 About TA Corporation With a history tracing back to 1972, TA Corporation has grown to become an established property and construction group in Singapore. Backed by its competencies in the construction business and experience in working with established real estate developers, the Group has gained a reputation as a developer of quality residential developments, targeting at the middle to upper middle markets. Some of its completed developments include Leonie Hill Residences and The Citrine, and its ongoing real estate development projects include Parc Seabreeze, Auralis, Coralis and The Cristallo. In addition, the Group has also successfully ventured overseas through joint-ventures in the PRC and Cambodia. TA Corporation s main construction business is principally undertaken through its subsidiary, Tiong Aik Construction Pte Ltd, which has a track record of almost 40 years in Singapore. Over the years, the Group has built a sound reputation as a reliable building contractor with the ability to undertake a wide spectrum of projects for both public and private sector clients. Most of its past and existing customers are established names, including government bodies such as the URA, HDB and JTC and established real estate developers such as Allgreen Properties Ltd, CapitaLand Residential Ltd, CapitaLand Commercial Ltd, The Ascott Group, Keppel Land Realty Pte Ltd, Wheelock Properties (S pore) Ltd and Wing Tai Holdings Ltd. TA Corporation was listed on the SGX Mainboard on November 21, China Construction Bank Corporation, Singapore Branch, is the Issue Manager, Joint Underwriter and Joint Placement Agent for the Group s initial public offering, and assumes no responsibility for the contents of this announcement. Page 5 of 6

6 ISSUED ON BEHALF OF : TA Corporation Ltd BY : Citigate Dewe Rogerson, i.mage Pte Ltd 1 Raffles Place #26-02 One Raffles Place SINGAPORE CONTACT : Mrs Elaine Lim / Mr Ng Chung Keat at telephone DURING OFFICE HOURS : (Office) AFTER OFFICE HOURS : / (Handphone) elaine.lim@citigatedrimage.com / chungkeat.ng@citigatedrimage.com 022/12/001/TACL May 12, 2012 Page 6 of 6

% S$ million 9M2010 9M2009

% S$ million 9M2010 9M2009 Roxy-Pacific Holdings Limited NEWS RELEASE ROXY-PACIFIC CONTINUES TO REPORT STRONG GROWTH IN 3Q2010 - Revenue surges 41 to S$53.1 million - 46 jump in pre-tax profit to S$11.0 million - 44 increase in